SingTel mulls sale of Optus Satellite Unit in $1-bn deal
18 Mar 2013
Singapore Telecommunications Ltd (SingTel) is mulling selling the satellite business of its Australian unit Optus, in a deal that could be worth more than $1 billion.
SingTel, Southeast Asia's largest telecom operator, today said that it is conducting a strategic review of the Optus Satellite business to optimise value for shareholders and has appointed Credit Suisse and Morgan Stanley as financial advisors to assist with the review.
''SingTel will make an appropriate announcement in the event of any material development arising from the review,'' it added in its short press release.
Optus is the only telecommunication company to own and operate a fleet of satellites in Australia and has been providing premium satellite services across Australia and New Zealand for over 25 years.
Optus Satellite delivers free-to-air and pay TV, mobile telephony and broadband services to over 2 million Australian households and multi-national companies. Optus operates a fleet of five satellites, with another satellite, Optus 10, scheduled for launch in 2013.
Its customers include broadcasters and government organisations, such as the Australian Broadcasting Corporation, Foxtel, GlobeCast Australia, SBS, Southern Cross, WIN, GWN7, NBN Co, NSW Department of Education and Communities, Department of Defence and Air Services Australia.
Optus Satellite recorded revenues of A$319 million for the financial year ended 31 March 2012.
